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"Bill of exchange" versus "draft"

English translation: same: legal vs. common term

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17:25 Mar 3, 2005
English to English translations [PRO]
Bus/Financial - Finance (general)
English term or phrase: "Bill of exchange" versus "draft"
I was wondering whether someone could explain the difference between a "draft" and a "bill of exchange" to me? If there is a difference, it's not clear to me. Thanks! Hanna
SpanTran
Local time: 02:21
English translation:same: legal vs. common term
Explanation:
They are the same. One is a legal term, the other is a more common term.

Here are some examples:

Bill of exchange: A signed, written order by one business that instructs another business to pay a third business a specific amount. Also called a draft. datek.smartmoney.com/glossary/index.cfm

Synonymous to a draft, (draft is the common name in the US; however, under law, this document is known as a bill of exchange) this is a written, unconditional and negotiable demand for payment. A bill of exchange is a written order for a certain sum of money, to be transferred on a certain date from the person who owes the money or agrees to make the payment (the drawee) to the creditor to whom the money is owed (the drawer of the bill). Thus, it is the creditor or the drawer, who actually draws (fills out) the bill of exchange as to the amount due and the date on which it is to be paid. It is addressed to the debtor, the drawee. The bill of exchange must be accompanied by an instruction letter. Upon request, this may be obtained from one's bank.
www.dnb.com/US/communities/intlbusiness/general_export__inf...

A written, dated, and signed three-party instrument containing an unconditional order by a drawer that directs a drawee to pay a definite sum of money to a payee on demand or at a specified future date. Also known as a draft.
august1.com/pubs/dict/b.htm
Selected response from:

Todd Field
United States
Local time: 18:21
Grading comment
Thanks a lot to all of you for your help! Hanna
4 KudoZ points were awarded for this answer



Summary of answers provided
5see comment
Alejandra Hozikian
5Explanation below
Johan Venter
4same: legal vs. common term
Todd Field
3a note about drafts vs money orders (if it's relevant)
Vladimir Dubisskiy


  

Answers


10 mins   confidence: Answerer confidence 5/5
Bill of exchange" versus "draft
see comment


Explanation:
Dear Johanna,

Apparently there is no difference. But in the U.S. the term frequently used is draft instead of bill of exchange,which is more used in Britain. Now, regarding their meaning,there is no difference. They are ways of payment which operate in a way similar to a cheque,but the drawer is the same as the payee (that is the beneficiary).Instead of there being three parties involved (in the cheque), there are only two. And the bank, of course.
I hope I did help you.

Regards,
Alejandra

Alejandra Hozikian
Argentina
Local time: 21:21
Specializes in field
Native speaker of: Native in SpanishSpanish
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11 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
same: legal vs. common term


Explanation:
They are the same. One is a legal term, the other is a more common term.

Here are some examples:

Bill of exchange: A signed, written order by one business that instructs another business to pay a third business a specific amount. Also called a draft. datek.smartmoney.com/glossary/index.cfm

Synonymous to a draft, (draft is the common name in the US; however, under law, this document is known as a bill of exchange) this is a written, unconditional and negotiable demand for payment. A bill of exchange is a written order for a certain sum of money, to be transferred on a certain date from the person who owes the money or agrees to make the payment (the drawee) to the creditor to whom the money is owed (the drawer of the bill). Thus, it is the creditor or the drawer, who actually draws (fills out) the bill of exchange as to the amount due and the date on which it is to be paid. It is addressed to the debtor, the drawee. The bill of exchange must be accompanied by an instruction letter. Upon request, this may be obtained from one's bank.
www.dnb.com/US/communities/intlbusiness/general_export__inf...

A written, dated, and signed three-party instrument containing an unconditional order by a drawer that directs a drawee to pay a definite sum of money to a payee on demand or at a specified future date. Also known as a draft.
august1.com/pubs/dict/b.htm

Todd Field
United States
Local time: 18:21
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4
Grading comment
Thanks a lot to all of you for your help! Hanna
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12 mins   confidence: Answerer confidence 5/5
Explanation below


Explanation:
A bill of exchange is:
A non-interest-bearing written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date.

Bills of exchange are similar to checks and promissory notes. They can be drawn by individuals or banks and are generally transferable by endorsements. The difference between a promissory note and a bill of exchange is that this product is transferable and can bind one party to pay a third party that was not involved in its creation. If these bills are issued by a bank, they can be referred to as bank drafts. If they are issued by individuals, they can be referred to as trade drafts.

Johan Venter
Czech Republic
Local time: 02:21
Works in field
Native speaker of: Native in EnglishEnglish
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32 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
a note about drafts vs money orders (if it's relevant)


Explanation:
i work in the banking system (Canada) and simply want to add that drafts are to be given for over $1000.00 amounts. $1000.00 and beow - money orders are to be supplied.

Vladimir Dubisskiy
United States
Local time: 19:21
Specializes in field
Native speaker of: Native in RussianRussian, Native in UkrainianUkrainian
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